Coal&Allied Acqn of Int. etc

RIO TINTO PLC
14 September 1999


The following announcement was released to the Australian Stock
Exchange on 14 September 1999.
                                 
Coal & Allied Shareholders Approve Purchase of 
Rio Tinto's NSW Assets

As  foreshadowed in April, Coal & Allied Industries Limited is  to
purchase Rio Tinto's New South Wales coal interests.

The  purchase  of Rio Tinto's New South Wales coal interests  will
enable the integration of the Howick and Hunter Valley operations,
and the achievement of significant cost savings.

Mr.  Derrick  Docherty, who chaired the committee  of  Independent
Directors said, 'The committee, after consideration of all aspects
of  the  transaction  and  in the interest  of  all  shareholders,
recommended completion to the full coal & Allied Board.'

Mr  Barry  Cusack,  Chairman of Coal & Allied said,  'Shareholders
today  endorsed  a  significant restructure  that  will  see  more
efficient  operation of the combined assets,  resulting  in  lower
operating costs and better use of capital.

Now  that  a  common ownership structure exists, the name  of  the
combined  operations in the Hunter Valley will be  Coal  &  Allied
Industries Limited.  Dr Kim Tronson, formerly Managing Director of
Rio  Tinto Coal NSW Pty Ltd, has been appointed Managing  Director
of Coal & Allied.

On  9  September,  Coal  & Allied and Mitsubishi  Development  Pty
Limited  signed  agreements whereby Coal &  Allied  will  purchase
Mitsubishi's  40%  interest in the Howick mine  and  the  Oaklands
exploration  joint venture.  Coal & Allied will issue 7.1  million
shares  to  Mitsubishi,  an  8.2%  holding,  and  will  invite   a
representative  to  join  the Board.  Once  the  transactions  are
settled, Rio Tinto's interest in Coal & Allied's ordinary share in
issue will decrease to 70.88%.

Coal  &  Allied's New South Wales assets include the Hunter Valley
No. 1 and Mount Thorley mines, the Mount Pleasant coal project and
a  30%  interest in Port Waratah Coal Services Limited.  Following
the  purchases from Rio Tinto and Mitsubishi, the Company's assets
will  also include the Howick mine, the Oaklands and Maules  Creek
deposits  and  an  additional 3.7% equity  of  Port  Waratah  Coal
Services.

The effective date of the transactions is 1 July 1999.

For further information, please contact:

Media Relations                    Investor Relations
Alexis Fernandez                   Peter Jarvis
+ 44 207 753 2305                  + 44 207 753 2401

Coal & Allied
Paul White
[phone] (mobile)